By :First-time bond issuers are rushing into India’s debt market as unprecedented stimulus steps reduce borrowing costs to the cheapest since 2005.Yoga guru Baba Ramdev ’s Patanjali Ayurved Ltd. and Wipro Enterprises Pvt., part of Indian software tycoon Azim Premji ’s empire, are among 91 maiden rupee-note sellers so far this year. For the issuers, debt deals are an opportunity to build cash buffers in a slumping economy. But bond yield premiums suggest the market welcomed the moves.The spread between top-rated three-year corporate notes and similar tenor government debt fell to 22.4 basis points last month, the lowest level since October 2005. The gap stood at 23 basis points on Friday.Other notable firms are tapping the debt market for the first time. Godrej Industries Ltd., part of a 123-year-old conglomerate, raised 7.5 billion rupees in July, while Rashtriya Chemicals & Fertilizers Ltd., a state-owned firm, this month raised 5 billion rupees.--With assistance from Suyash Singhal.

Source: Economic Times August 17, 2020 06:02 UTC